Recently we’ve been hearing from investors who tell us they’re finding it difficult to find income verified loans on our platform. This has led some to wonder whether loan originations have slowed at Lending Club or whether we’ve changed our standards for income verification.
In fact, neither is the case. Loan issuances are at historic highs: in April 2013 $140,118,275 in loans were facilitated through the Lending Club platform, up nearly 10% from March 2013 and our highest monthly loan issuance ever. In addition we haven’t changed our standards for verifying income; we continue to conduct income verification on over 60% of loans.
So why does it seem like there are “fewer” income verified loans on the platform?
This perception is simply due to extremely high investor demand causing loans to receive 100% investor funding before the borrower income verification process is complete. When a loan receives 100% funding, we remove the listing from the platform. Lending Club is still verifying income prior to issuing a loan – however, the loan is just no longer visible on our platform since it’s reached 100% funding from investors.
By analyzing our historical Download Loan Data file you’ll better understand how income verified loans perform compared to non-income verified loans, as well as gain more insight into what loan factors matter the most.
Please feel free to reach out to us if you have any additional questions, and thank you very much for your understanding and patience as Lending Club grows to meet both investor and borrower demand.